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Wednesday, September 26th, 2018

Federal Minister for Housing and Works Takes Serious Notice of the Cost over Rune in the Seven Projects Undertaken By Pakistan Housing Authority Under Prime Minister Housing Programme

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Islamabad: On the directions of Honourable Federal Minister for Housing and Works, the subject inquiry was conducted by Mr. Sikandar Hayat Maken, Project Director, PMC of Ministry of Housing and Works as part of zero tolerance policy and maintaining transparency in the Ministry. The inquiry has been conducted with spirit of cleansing the Ministry and its attached departments from corrupt elements. Following seven (07) projects were probed by the inquiry officer:-

Construction of “C” type apartments at G-11/3, Islamabad

Construction of ‘E’-type apartments at G-11/3, Islamabad

Infrastructure work of C and E type apartments at G-11/3, Islamabad

Construction of ‘D’-type apartments at G-10/2, Islamabad

Construction of ‘D’-type apartments at Wafaqi Colony, Lahore

Construction of ‘E’-type apartments at Wafaqi Colony, Lahore

Construction of shops near UET, Lahore

2. The initial overall contract cost was Rs.1949.99 million whereas the completion cost of seven projects was assessed as Rs.2793.199 million.

The difference as Rs.843.209 million which is 43% above the original cost of the project, While the engineering estimates given by the consultants are to the tune of 1101.8 million which is 65% above the estimated cost.

Contracts were awarded without proper scrutiny and verification of rates prevailing in the market. Further, the estimates were not prepared according to the site conditions as no soil investigations was carried out.

This led to changes in the foundation design and subsequent rise in the cost. On top of that the contractors are demanding further escalation which may cause a huge loss to the National Exchequer. Award of contracts was also not transparent and only 4-5 companies were allowed to participate in the competition. The price escalation and change in design of the project has ultimately led to delay in the completion of the project by almost 02 years.

The inquiry officer has recommended that the contractors shall complete the remaining work within the amount of contract without asking for further escalation, as the cost is already 43% above the original estimation. Recovery of the embezzled amount shall be made from the concerned officer/ contractors. The inquiry officer has proposed to take strict disciplinary proceedings against the officers of Technical and Finance Wing of Pakistan Housing Authority Foundation.

The Ministry of Housing and Works has initiated disciplinary action against all those officers pointed out by the inquiry officer. Four Officers Mr. Ajmal Saeed, Assistant Director (Finance), PHA Foundation , Mr. S.M. Zohair Khalid, Director General(CPM) now Superintending Engineer, Pak.PWD, Mr.  Athar Nawaz Malik, Director General(CPM), now Director (Engineering ), NCL and Mr.

Javed Iqbal Malik, Deputy Director(CPM), PHA Foundation have been suspended. Mr. Muhammad Hasnain, Manager/DGM (CPM), PHA Foundation has been repatriated to his parent department, Govt of Punjab. Ms. Naseem Akhtar, Director ( Maintenance), CDA (on deputation) , the CDA has been asked for her repatriation for disciplinary proceedings by the Ministry of Housing and Works. The following companies involved in the execution of work were found guilty and has been declared black listed:-

S.No. Name of firm Number of Projects
1. M/s Abdul Majeed and Company 3 Projects at Islamabad
2. M/s Iftikhar and Company 2 Projects at Lahore
3. M/s Techno International 1 Project at Islamabad
4. M/s Toor Trading and Company 1 Project at Lahore.

Further an Inquiry Committee has been constituted to look into the implementation of the points raised in the report submitted by the inquiry officer so as to make possible the early implementation of the seven projects/schemes.

Matter which has serious implications regarding transparency, blatant violations of rules including PPRA and huge loss caused to the National Exchequer amounting to over 84 crore rupees, this case is being referred to NAB, for recovery of the above mentioned amount and prosecution of all those involved in this fraudulent exercise.

The Project Management Cell (PMC) has also taken notice of the malpractices in the execution of developmental works carried out by Pak.PWD in Sialkot, Bahawalpur and Faisalabad. On the recommendation of the PMC Report, the following officers have been suspended and enquiry has been ordered.

Mr. Muhammad Rashid
Executive Engineer

Mr. M. Irshad-ul-Hassan
Assistant Executive Engineer

Mr. Pervez Iqbal Mehmood
Assistant Executive Engineer

For more information, contact:
Haji Ahmed Malik
Principal Information Officer
Press Information Department (PID)
Tel: +9251 925 2323 and +9251 925 2324
Fax: +9251 925 2325 and +9251 925 2326


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